Seven parking spots were instantly sold for R570,000 each in the the upmarket suburb of De Waterkant, Cape Town, Tower Property Fund asset manager Johan Malherbe said.
The spots were bought by owners of apartments in a new building, Napier Street, that is being developed by Tower Property Fund. The parking spot owners will have to pay a monthly levy of R300 for their new "properties".
“The parking spots were put on the market in the beginning of the year and sold out immediately,” Malherbe told Business Insider South Africa. “Demand exceeded supply.”
Tower Property Fund is spending R350 million to develop the Napier Street and redevelop the popular Cape Quarter. The fund says it expects to earn a 20% return on its investment. Apartments are being sold for R90,000 per square meter.
Expensive parking bays in Cape Town made headlines last year when bays were sold for R1 million, and R1.1 million respectively in Clifton and Bakoven.
In 2009, Pam Golding Properties sold single basement parking bays in two Clifton residents for R580,000 and R750,000, while another sold for a staggering R2 million in 2008.
Cape Town has the most expensive properties in South Africa, but the market is showing signs of decline with luxury property growth falling by 50%.
“The citywide drought and the uncertainty over the process of land expropriation without compensation have weakened sales activity,” according to realtor Knight Frank.
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